Market Cap
US$159.1m
Last Updated
2020/02/17 01:07 UTC
Data Sources
Company Financials +
Executive Summary
The Lovesac Company designs, manufactures, and sells foam filled furniture, sectional couches, and related accessories.
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Lovesac's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LOVE's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.6%
LOVE
1.7%
US Consumer Durables
1.5%
US Market
1 Year Return
-61.4%
LOVE
35.4%
US Consumer Durables
20.1%
US Market
Return vs Industry: LOVE underperformed the US Consumer Durables industry which returned 35.4% over the past year.
Return vs Market: LOVE underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| LOVE | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.6% | 1.7% | 1.5% |
| 30 Day | -14.2% | 4.4% | 1.4% |
| 90 Day | -19.6% | 8.2% | 8.7% |
| 1 Year | -61.4%-61.4% | 37.3%35.4% | 22.7%20.1% |
| 3 Year | n/a | 37.4%31.2% | 50.1%40.5% |
| 5 Year | n/a | 40.0%30.7% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Lovesac's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Need To Know: The Lovesac Company (NASDAQ:LOVE) Insiders Have Been Buying Shares1 month ago | Simply Wall St
We're Keeping An Eye On Lovesac's (NASDAQ:LOVE) Cash Burn Rate2 months ago | Simply Wall St
Volatility 101: Should Lovesac (NASDAQ:LOVE) Shares Have Dropped 25%?Valuation
Is Lovesac undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LOVE ($10.94) is trading below our estimate of fair value ($60.63)
Significantly Below Fair Value: LOVE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LOVE is unprofitable, so we can't compare its PE Ratio to the Consumer Durables industry average.
PE vs Market: LOVE is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate LOVE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LOVE is overvalued based on its PB Ratio (1.9x) compared to the US Consumer Durables industry average (1.5x).
Next Steps
Future Growth
How is Lovesac forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
63.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOVE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: LOVE is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: LOVE's is expected to become profitable in the next 3 years.
Revenue vs Market: LOVE's revenue (15.4% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: LOVE's revenue (15.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if LOVE's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Lovesac performed over the past 5 years?
-35.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOVE is currently unprofitable.
Growing Profit Margin: LOVE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: LOVE is unprofitable, and losses have increased over the past 5 years at a rate of -35.3% per year.
Accelerating Growth: Unable to compare LOVE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: LOVE is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (9.1%).
Return on Equity
High ROE: LOVE has a negative Return on Equity (-14.43%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Lovesac's financial position?
Financial Position Analysis
Short Term Liabilities: LOVE's short term assets ($95.4M) exceed its short term liabilities ($31.8M).
Long Term Liabilities: LOVE's short term assets ($95.4M) exceed its long term liabilities ($2.5M).
Debt to Equity History and Analysis
Debt Level: LOVE is debt free.
Reducing Debt: LOVE had no debt 5 years ago.
Balance Sheet
Inventory Level: LOVE has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if LOVE's debt is covered by short term assets.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: LOVE has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: LOVE has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of -33.6% each year.
Next Steps
Dividend
What is Lovesac's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate LOVE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate LOVE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LOVE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LOVE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LOVE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Shawn Nelson (42yo)
3yrs
Tenure
US$2,601,727
Compensation
Mr. Shawn David Nelson Founded LoveSac Alternative Furniture Co. (known as LoveSac Corporation) in 1998 and serves as the Chief Executive Officer and Director. Mr. Nelson is the lead designer of its patent ...
CEO Compensation Analysis
Compensation vs Market: Shawn's total compensation ($USD2.60M) is above average for companies of similar size in the US market ($USD1.11M).
Compensation vs Earnings: Shawn's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 3yrs | US$2.60m | 1.6% $2.5m | |
| President & COO | 5.1yrs | US$1.29m | 0.84% $1.3m | |
| Executive VP | 3yrs | US$907.78k | 0.45% $720.6k | |
| CTO & Chief Information Officer | 2.1yrs | no data | no data |
3.0yrs
Average Tenure
55yo
Average Age
Experienced Management: LOVE's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 3yrs | US$2.60m | 1.6% $2.5m | |
| Independent Director | 9.8yrs | no data | no data | |
| Chairman of the Board | 3yrs | no data | 0.25% $404.3k | |
| Director | 2.7yrs | no data | no data | |
| Independent Director | 5.7yrs | no data | no data | |
| Independent Director | 0.7yrs | no data | no data | |
| Independent Director | 0.7yrs | no data | no data |
3.0yrs
Average Tenure
51yo
Average Age
Experienced Board: LOVE's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LOVE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 62.4%.
Top Shareholders
Company Information
The Lovesac Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Lovesac Company
- Ticker: LOVE
- Exchange: NasdaqGM
- Founded: 1998
- Industry: Home Furnishings
- Sector: Consumer Durables
- Market Cap: US$159.052m
- Shares outstanding: 14.54m
- Website: https://www.lovesac.com
Number of Employees
Location
- The Lovesac Company
- Two Landmark Square
- Suite 300
- Stamford
- Connecticut
- 6901
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LOVE | NasdaqGM (Nasdaq Global Market) | Yes | Common Stock | US | USD | Jun 2018 |
Biography
The Lovesac Company designs, manufactures, and sells foam filled furniture, sectional couches, and related accessories. The company offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and accessories comprising drink holders, foot sac blankets, decorative pillows, fitted seat tables, and ottomans. It markets its products through its approximately 75 showrooms at top tier malls, lifestyle centers, and street locations in 30 states of the United States, as well as through online. The Lovesac Company was founded in 1998 and is headquartered in Stamford, Connecticut.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:07 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/03 |
| Annual Earnings | 2019/02/03 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.